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Saturday, November 24, 2012

The present form of EON ELECTRIC is the result of two
de-mergers during past two years. This company (formerly known as INDO ASIAN
FUSEGEAR) sold its Switch Gear business to French electric equipment maker
Legrand for a consideration close to Rs.500 Cr in 2010.Later in 2011 ,company
de-merged its metering business into another company named Advance Metering Technology.Afterboth of these
transactions company is left with lighting products, wires and wiring accessories , cables and Fan.Now
company is concentrating its efforts to develop many new energy efficient
products in these categories.LED lighting products is one among them . Since LED
is not using anyhazardous materials like mercury it is
expected to get consumers priority overCFL
in coming years .For getting advanced
technology in this field ,EON already tied-up with one Japanese and another
European company operating in this field.Recently company ventured into home
automation products with the introduction of modular switches .Company’s R
& D division introduced indigenously developed presence sensor technology
based lighting accessories to save
energy.Recently company started production of Lithium Ion Batteries from its
newly set up plant in Haridwar. Company is claiming this is the first such manufacturing
facility in India to produce Lithium Ion batteries to be used in mobile
handsets, laptops, cameras, tablets ..etc which is still now imported from
China.Company is expecting to garner reasonable market share in this products
based on superior quality over cheap Chinese products.

Even the company not started to show black in its bottom line after
theselling of its Switch Gear division
and de- merging of metering business,
sharp improvement is visible in its turnover and reduction in loss in recent times ( See Table below)

Out of the total amount received from the
selling ofSwitch Gear division, company
distributed Rs.10/- per share as special dividend,came out with abuy back program at a maximum price of
Rs.130/- per share and most importantly paid back majority of its debt.After the
scheme of later de-merger ,on a rough estimate company is still with a cash balance over Rs.100 Cr where the market
capitalisation of this company is is just
Rs.48 Cr . I believe the well knitted marketing network and well experienced
promoters are two big positive factors for this company .EON having enough cash to
utilise the available opportunities and the company is already started its
capex .I am expecting the company can back
to black in another few quartersand at
current market price of Rs.30/- it is worth for a bet for investors with some
risk appetite.Stock is listed both in NSE and BSE.

Saturday, November 17, 2012

In a country like India with huge
population ,healthcare industry is considered as a promising one and it is
showing good growth rate in recent times.Increasing education level and disposable income,better awareness and various
health schemes of governments acting as the catalyst for this rapid growth .Availability
of better hospital facilities and awareness of patients increasing the potential of the players in medical
diagnostic Industry.Periodic outbreak of various diseases at various parts of
country ensures sustained business for this industry as a whole. Span
Diagnostic is a strong player in this industry which is manufacturing and distributing
various kinds of diagnostic/pathology lab devices, including sample test
devices and regents.SPAN originally started its operations in 1973 as as Desai Laboratories and changed its name to
SPAN DIAGNOSTICS in 1980.This Surat based company having strong technical and
marketing alliances with well known global players like Hitachi Chemical Diagnostics USA,Technoclone
GMBH Austria,Biotechnica Instruments Italy ..etc. and having a nationwide
marketing network .At present a major portion of company’s income
is coming from reagents manufacturing business for Immunology, Biochemistry, Microbiology,
Serology and Histopathology .Increasing
trend of lifestyle related diseases ensuring sustained growth in this segment.Company
is a market leader in testing kits for AIDS and Maleria and a major supplier of
testing kits for government sponsored
health programmes. Span also having an approved facility for antibody
productions and their purification.

Company reported steady growth till 2011 and rewarded its minority share
holders accordingly .But in last year Span recorded a loss(excluding extra
ordinary income) ,thanks to its wrong decision to devote money and effors for
developing its medical equipments business and overall
sluggishness in economy.I feel ,now company realised its mistakes and taking
corrective steps .Their decision to sell Hematology analyzers business to Nihon Kohden India Private Limited
and concentrate in their core business of diagnostic reagent manufacturing is
part of their changing strategy .In order to tap the export market company started a joint venture Span
Diagnostics South Africa (PTY) Limited with Reindus Health (Pty) Limited for
increasing its presence in African Market. Company also planning to enter in US
market in near future . SPAN is also planning to aggressively tap the contract
manufacturing opportunities for regents.In latest September quarter company
reported sharp improvement in its performance where sales increased from Rs.15
Cr to Rs.25 Cr and net profit improved sharply from Rs.56 lakhs to Rs.2.26 Cr .Quarterly
EPS is Rs.3.16.To scale up its business to next level,company having plans to
sell part of its stake to MNC’s at right valuation.Considering the huge
potential of this industry and goodwill of this company we can’t rule out the
possibility of such an alliance with global diagnostic majors .If such an
alliance materializes that will re write the fortunes of SPAN. On good September results its stock price appreciated recently and now consolidated around Rs.40 .Those with a
long term view may consider SPAN @ CMP
of Rs.43.

Thursday, November 15, 2012

Bambino Agro reported a loss of Rs.81 lakhs in November quarter . For the full year 2011-2012 company reported a profit of Rs.3 Cr v/s Rs.1.8 Cr posted last year .After a long gap of 15 years company declared a dividend @ 15 % .During the latest quarter company also reported its best ever single quarter sales figure of Rs.70 Cr .Even the company posted a loss in latest quarter I feel promoters are reasonably confident about the future and hence they decided to distribute profit this time.Investors with some risk appetite can still hold it for long term.

Saturday, November 10, 2012

WISHING A HAPPY DIWALI AND PROSPEROUS YEAR AHEAD.THIS TIME I AM CHOOSING 'BRAND' AS THE THEME FOR STOCK SELECTION.WE ALL KNOW HOW A BRAND IS IMPORTANT FOR COMPANIES AND HOW STOCK MARKET VALUING COMPANIES WITH GOOD BRANDS .WE HAVE MANY EXAMPLES BOTH FROM MNC AND INDIAN SPACE LIKE NESTLE,GSK CONSUMER,P&G,TTK PRESTIGE,PAGE INDUSTRIES..Etc.THEIR BRANDS ARE THEIR BIGGEST ASSETS AND THE MAIN FACTOR DRIVING GROWTH YEAR AFTER YEAR.BUT IT IS A FACT THAT STOCK PRICE OF COMPANIES HAVING GOODS BRANDS ARE HIGHLY PRICED AND OUT OF REACH OF MANY SMALL RETAIL INVESTORS . BUT STILL THERE ARE SMALL BUT GROWING COMPANIES WITH GOOD BRANDS IN SOME NICHE SPACES.MANY OF THE SELECTED COMPANIES ARE ALREADY RECOMMENDED HERE AND SOME OF THEM ARE TRADING AT THEIR 52 WEEK HIGH LEVELS.SOME STOCKS EARLIER RECOMMENDED FOR PROFIT BOOKING ,BUT NOW CONSIDERED ALL POSITIVE DEVELOPMENTS INCLUDING FINANCIAL PERFORMANCE AND OTHER FACTORS HAPPENED THEREAFTER WHILE SELECTING THESE STOCKS.I BELIEVE EVEN THESE COMPANIES ARE TRADING AT SUBSTANTIALLY HIGHER RATES ,INDIA'S FAVORABLE DEMOGRAPHIC TRENDS WILL DRIVE THE GROWTH OF THESE COMPANIES GOING FORWARD.

Tuesday, November 6, 2012

Board of
Directors of Bambino
Agro Industries Ltd will meet on November 15, 2012, inter alia,
to consider and take on record, the audited financial results for the
quarter/year ended September 30, 2012 and to recommend dividend, if any.
If the board decide to declare any dividend this time , this will be the first instance in last 15 years.

Sunday, November 4, 2012

Investing and trading are two very different methods of attempting to
profit in the financial markets. The goal of investing is to gradually
build wealth over an extended period of time through the buying and holding
of a portfolio of stocks, baskets of stocks, mutual funds, bonds and
other investment instruments. Investors often enhance their profits
through compounding,
or reinvesting any profits and dividends into additional shares of
stock. Investments are often held for a period of years, or even
decades, taking advantage of perks like interest, dividends and stock splits
along the way. While markets inevitably fluctuate, investors will "ride
out" the downtrends with the expectation that prices will rebound and
any losses will eventually be recovered. Investors are typically more
concerned with market fundamentals, such as price/earnings ratios and management forecasts.

Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs
or other instruments, with the goal of generating returns that
outperform buy-and-hold investing. While investors may be content with a
10 to 15% annual return, traders might seek a 10% return each month.
Trading profits are generated through buying at a lower price and
selling at a higher price within a relatively short period of time. The
reverse is also true: trading profits are made by selling at a higher
price and buying to cover at a lower price (known as "selling short")
to profit in falling markets. Where buy-and-hold investors wait out
less profitable positions, traders must make profits (or take losses)
within a specified period of time, and often use a protective stop loss
order to automatically close out losing positions at a predetermined
price level. Traders often employ technical analysis tools, such as moving averages and stochastic oscillators, to find high-probability trading setups.

A trader's "style" refers to the time frame or holding period in
which stocks, commodities or other trading instruments are bought and
sold. Traders generally fall into one of four categories:

Position Trader – positions are held from months to years

Swing Trader – positions are held from days to weeks

Day Trader – positions are held throughout the day only with no overnight positions

Scalp Trader – positions are held for seconds to minutes with no overnight positions

Traders often choose their trading style based on factors including:
account size, amount of time that can be dedicated to trading, level of
trading experience, personality and risk tolerance. Both investors and
traders seek profits through market participation. In general, investors
seek larger returns over an extended period through buying and holding.
Traders, by contrast, take advantage of both rising and falling markets
to enter and exit positions over a shorter time frame, taking smaller,
more frequent profits.

Saturday, November 3, 2012

During
1970’s and 80’s Indian Cutting tools
industry was dominated by two multinational big daddies – Sandvik Asia and
Widia India .In 1977 few technocrats resigned from Sandvik Asia and started
this company . Rapicut’s manufacturing facility is located at Ankleshwar,Gujarat.Later
company took over Gujarat Drillwell
Private Limited and merged the same with Rapicut in 1993.Company producingvarious types of Tungsten Carbide products like
. T.C. Buttons, Rings, Tips, Inserts, Flats, Bushes, Jute Eyelets, Solid
Carbide Cutters,Tungsten Metal powder ..etc which finds applications in Mining,Metal
Cutting and Engineering Industries. Company’s client list includes Neyveli Lignite Corporation,Mineral
Exploration Corporation Limited , Steel
Authority of India Limited
,Tata Iron & Steel Co.
Limited ,BHEL ..etc .This small company showing steady growth
over past many years .In latest
quarter company reported good numbers .This time it is more important to note
that this performance came at a time there is severe slow down in its user
industries.I believe company now started to eat the market share of some
biggies too.Rapicut is now expanding
its manufacturing capacities and ready to move to the next growth orbit . For the
past few monthspromoters are purchasing
shares from open marketwhich is another
point to note.Company is managed by a decent management which showing their willingness to share the success
with minority share holders. This small company raised their dividend payout
ratio from 10 % to 30 %during last four
years.For the last FY,company reported a sale of Rs.30 Cr , net profit of Rs.3
Cr and an EPS of Rs.14/-. In the first six months of this FY itself Rapicut
posted a turnover ofabout Rs.20 Cr and
a net profit of 2.15 Cr .Half year EPS is Rs.10/-. Company is expected to
perform even better going forward with some revival in demand from user
industries and stability in raw material price.Due to purchases by promoters and
good performance in second quarter ,its share price appreciated recently and trading
around Rs.86/- .This company having a tiny equity base of just Rs.2.15 Cr hence liquidity is low.Those with high
risk appetite can add small lots at CMP and buy more if there is any dip below Rs.75/-. Steady growth ,good management,resilience
during tough business environment ,decent dividend yield ,possible capacity
expansion and increasing promoter confidence ..etc makes it an attractive micro
cap stock, but only for brave hearts due to low liquidity.CMP is Rs.86/-